WEBVTT - Peloton's Rower and Web3 Meets 5G 0:00:02.200 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.320 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg technology with 0:00:10.920 --> 0:00:28.639 Emily Jay. I'm emily check in San Francisco, and this 0:00:28.720 --> 0:00:31.319 is Bloomberg technology coming up in the next hour. Could 0:00:31.320 --> 0:00:33.760 it be the secret to a peloton rebound? The bike 0:00:33.840 --> 0:00:37.880 maker finally debuts it's long awaited rower. But well, customers 0:00:37.960 --> 0:00:41.160 spark over more than three thou dollars for it. We'll 0:00:41.159 --> 0:00:44.760 discuss plus web. Three meets five G in a first 0:00:44.760 --> 0:00:47.080 of its kind. Deal t mobile is teaming up with 0:00:47.120 --> 0:00:50.800 noble labs to launch the first crypto powered mobile service. 0:00:51.120 --> 0:00:54.680 We'll talk to the CEO later this hour, and how 0:00:54.800 --> 0:00:59.640 Slana is trying to tackle everyone's energy crypto problems one 0:01:00.000 --> 0:01:02.120 of chain at a time. Co founder at a tole 0:01:02.240 --> 0:01:06.919 yaco Venko is with US Peloton launching it's long awaited rower, 0:01:07.040 --> 0:01:10.800 aiming to expand the fitness company's appeal and help it 0:01:10.880 --> 0:01:13.920 reverse that sales slide. It'll start taking orders for the 0:01:13.920 --> 0:01:19.560 PELOTON row and begin initial deliveries to US customers in December. 0:01:19.920 --> 0:01:22.040 Our very own marker and joins us now for more 0:01:22.080 --> 0:01:24.200 details on this. So, Mark you've been reporting on this 0:01:24.319 --> 0:01:27.080 rower for a long time now. Our customer is gonna 0:01:27.080 --> 0:01:30.720 pay for it. I certainly think Peloton has a group 0:01:30.760 --> 0:01:33.200 of consumers that want to build out their own home 0:01:33.280 --> 0:01:35.280 gym where they own a Peloton road, where they own 0:01:35.280 --> 0:01:38.040 a Peloton bike plus, where they own a tread, where 0:01:38.040 --> 0:01:40.679 they own the Pelletson Guide and they subscribe to their 0:01:40.680 --> 0:01:43.319 forty four dollar on the package. Right. But in terms 0:01:43.360 --> 0:01:46.120 of the overall peloton story, I don't think the road 0:01:46.160 --> 0:01:49.240 device moves the needle right now. This is a US 0:01:49.280 --> 0:01:52.560 only launch. This is a very premium price product. It 0:01:52.640 --> 0:01:57.120 comes in between five and more than the main competitors. 0:01:57.160 --> 0:02:00.600 But it's everything you would want from Peloton in awing machine. 0:02:00.880 --> 0:02:03.800 I just don't think rowing has that place in the 0:02:03.840 --> 0:02:06.680 market that a bike or tread might, or people are 0:02:06.720 --> 0:02:09.200 going to rush out to buy this thing unless you 0:02:09.240 --> 0:02:12.480 are one of those fitness enthusiasts. Right. So I think 0:02:12.520 --> 0:02:15.000 there is limited appeal compared to their other products. So 0:02:15.040 --> 0:02:17.840 I don't think this changes the Peloton story very much 0:02:18.040 --> 0:02:19.960 and you see that in the stock today is still 0:02:20.000 --> 0:02:22.880 down about three and down about one percent for the week. 0:02:23.200 --> 0:02:26.119 But obviously more hardware, more product offerings, is a good thing. 0:02:26.480 --> 0:02:28.440 And then one interesting point. I will make about the 0:02:28.520 --> 0:02:31.400 row is that they're really pushing the content subscription. If 0:02:31.480 --> 0:02:33.760 you buy a bike or bike plus, you do get 0:02:33.760 --> 0:02:36.040 a few basic classes for free and you don't need 0:02:36.080 --> 0:02:39.800 to pay for that dollar a month peloton subscription. Not 0:02:39.960 --> 0:02:42.040 the case with the row. To get any of the 0:02:42.040 --> 0:02:45.000 tailored content for rowing, you need to pay that fee, 0:02:45.200 --> 0:02:48.240 which could drive additional revenue over the long term. What 0:02:48.320 --> 0:02:51.320 does peloton think about how much this is really going 0:02:51.400 --> 0:02:53.480 to change their situation? I mean, do you know how 0:02:53.520 --> 0:02:55.800 much they're projecting? I mean do they think this is, 0:02:56.080 --> 0:02:58.280 you know, more of a niche product, or do they 0:02:58.360 --> 0:03:02.919 have higher hopes? So, when Peloton announced their most recent 0:03:02.919 --> 0:03:06.519 earnings about a month ago, now, tucked in several paragraphs 0:03:06.560 --> 0:03:09.440 now is a change to the reporting structure. They're no 0:03:09.560 --> 0:03:14.079 longer guiding full years in advance right and so although 0:03:14.240 --> 0:03:17.240 we have q one earnings coming up later in the year, 0:03:17.560 --> 0:03:21.400 we don't really have an estimate for their fiscale. This 0:03:21.480 --> 0:03:25.840 product won't officially start shipping until December, which the company 0:03:26.040 --> 0:03:29.040 has as their fiscal q two. So we really have 0:03:29.360 --> 0:03:31.880 no way to know how this is going to benefit 0:03:31.960 --> 0:03:35.320 the company financially at this point. My guest is given 0:03:35.320 --> 0:03:38.360 the launch will be US only. Given the high price point, 0:03:38.560 --> 0:03:43.000 it will be pretty incremental, probably throughout fiscal you know, 0:03:43.160 --> 0:03:45.680 who can guide, to guide that far ahead though? Anymore? 0:03:45.720 --> 0:03:49.040 I mean apple did away with guidance long ago. I mean, 0:03:49.080 --> 0:03:53.960 should that be our expectation anymore, especially in a massive downturn? 0:03:54.520 --> 0:03:57.000 You know, my personal opinion is that apple has been 0:03:57.000 --> 0:04:00.400 making the right decision, not guiding right. If I'm running 0:04:00.440 --> 0:04:03.160 a company, you basically only want to do as much 0:04:03.200 --> 0:04:06.680 as you're legally required to do. Apple went away from 0:04:06.720 --> 0:04:10.440 iphone unit sales a few years ago. That coincide with 0:04:10.480 --> 0:04:13.280 the greater focus on revenue versus units, as they raised 0:04:13.280 --> 0:04:15.720 a SP S. I think you're seeing a similar thing 0:04:15.720 --> 0:04:18.560 happened with pellets on here, where the individual units, some 0:04:18.600 --> 0:04:22.240 of the individual numbers, the long out forecasts really aren't 0:04:22.279 --> 0:04:24.880 not as important as the overall revenue number. The other 0:04:24.880 --> 0:04:27.240 thing I'll say about Paletson forecasts is that they've been 0:04:27.240 --> 0:04:30.599 missing right their guidance the last several quarters. At this point, 0:04:31.000 --> 0:04:33.560 things have been so in flux for the company that 0:04:33.640 --> 0:04:37.039 it's really impossible for them to really seriously guide. You know, 0:04:37.120 --> 0:04:40.359 more than a quarter out they've made pretty fundamental changes 0:04:40.480 --> 0:04:44.240 to their you know their financial structure and their operational structure. 0:04:44.279 --> 0:04:47.279 Recently they've had many layoffs. I think they've laid off 0:04:47.400 --> 0:04:51.760 about four thousand people across calendar two with this point. 0:04:52.200 --> 0:04:55.120 So clearly many changes being made to their cost structure there. 0:04:55.400 --> 0:04:57.920 They moved away from in House Logistics and some in 0:04:57.960 --> 0:05:02.200 house operations. They've saw manufacturing equipment in house and they're 0:05:02.200 --> 0:05:06.080 relying on outside manufacturers. Interestingly enough, they're relying on some 0:05:06.120 --> 0:05:08.600 of the same manufacturers that apple uses to build some 0:05:08.640 --> 0:05:11.159 of their latest products. So you're seeing a big cost 0:05:11.160 --> 0:05:13.560 structure change there and I think you'll hear more about 0:05:13.640 --> 0:05:16.680 how those cost changes are going to improve their bottom 0:05:16.720 --> 0:05:20.400 line probably sometime in October and November. Meantime, you've got 0:05:20.520 --> 0:05:25.080 other companies like soul cycle moving in and trying to 0:05:25.120 --> 0:05:29.880 take advantage of of Peloton's struggles. I mean, are they, 0:05:30.360 --> 0:05:32.599 you know, gonna be trying to turn around in a 0:05:33.040 --> 0:05:35.599 and in a totally different fitness landscape? You know, I 0:05:35.600 --> 0:05:38.159 think Nordic track is probably, you know, licking their chops 0:05:38.279 --> 0:05:40.720 right now when they saw that peloton row price point 0:05:41.120 --> 0:05:44.799 check Nordic tracks website earlier this week and they're rowing 0:05:44.800 --> 0:05:48.720 machines top out at eighteen right. Obviously the products are 0:05:48.720 --> 0:05:52.080 comparable and some of their functionality. Peloton is really pushing 0:05:52.120 --> 0:05:55.160 their AI and the machine learning integration. There's actually a 0:05:55.240 --> 0:05:58.160 few cool, you know, personalization tweaks in the peloton row 0:05:58.560 --> 0:06:01.920 where they use a and your own personal pace targets 0:06:02.000 --> 0:06:04.559 that you set to interact with the content that plays 0:06:04.600 --> 0:06:07.000 on the screen. So depending on your paste target or 0:06:07.000 --> 0:06:10.839 who's using the machine, uh, the instructure will give you, you 0:06:10.640 --> 0:06:12.919 you know, different goals and such. So it's actually pretty 0:06:12.920 --> 0:06:14.719 cool from what I've seen and been told by the 0:06:14.720 --> 0:06:16.800 company of how it all works together, and I think 0:06:16.880 --> 0:06:19.839 that is one key differentiator. The question for many consumers 0:06:20.160 --> 0:06:24.000 are those, you know, nice to have that more luxurious element, 0:06:24.040 --> 0:06:27.640 more personalization. Is that worth the extra thousand dollars? I 0:06:27.640 --> 0:06:29.560 think for some people who may be already be paying 0:06:29.560 --> 0:06:32.479 eighteen llars for a rower, maybe another thousand dollars is 0:06:32.520 --> 0:06:34.880 not too much, especially if you're already in the Peloton 0:06:35.000 --> 0:06:37.720 ecosystem where you're paying forty dollars a month and that 0:06:37.760 --> 0:06:40.560 gets you access to content on all of your peloton machines. 0:06:41.000 --> 0:06:42.960 I wish I knew how many people own more than 0:06:43.000 --> 0:06:45.240 one piece of Peloton equipment. I think that would be 0:06:45.240 --> 0:06:49.240 a key metric to know. I my sense is it's 0:06:49.279 --> 0:06:53.080 not a huge number, but you know, maybe times are changing. Bloombergs, 0:06:53.120 --> 0:06:55.440 part germ, and thank you so much, as always, for 0:06:55.520 --> 0:07:00.200 your reporting. Meantime, the investor known as the SPEC being 0:07:00.360 --> 0:07:03.080 says he's winding down two of his blank check companies, 0:07:03.240 --> 0:07:07.480 Jamath polly Hapatia, failed to find companies to successfully take public. 0:07:07.520 --> 0:07:09.920 He's now going to return more than a billion and 0:07:09.960 --> 0:07:14.000 a half dollars to investors. He says valuations and volatility 0:07:14.160 --> 0:07:27.440 the two biggest barriers to closing deals. It's been yet 0:07:27.480 --> 0:07:30.760 another dry summer here in California, with the state continuing 0:07:30.800 --> 0:07:34.200 to experience longer wildfire seasons as a direct result of 0:07:34.280 --> 0:07:37.400 climate change. And while it's possible to be on the 0:07:37.440 --> 0:07:40.440 lookout for fires, it is often already too late by 0:07:40.440 --> 0:07:43.239 the time they're spotted. So a new startup has devised 0:07:43.240 --> 0:07:47.080 a computer vision enabled system to catch the beginnings of 0:07:47.120 --> 0:07:50.280 wildfires before they become mega fires. It's called Pan o 0:07:50.400 --> 0:07:53.280 Ai just got twenty million dollars in new funding from 0:07:53.320 --> 0:07:56.440 initialized capital partner, Kim Mike Cutler joins us now to 0:07:56.440 --> 0:07:59.200 talk a little bit more about this investment. So Kim 0:07:59.400 --> 0:08:01.560 talk to us about how the technology works, given that 0:08:01.680 --> 0:08:04.119 a lot of these fires are starting in the middle 0:08:04.160 --> 0:08:07.360 of nowhere? Yeah, I mean what they have is a 0:08:07.440 --> 0:08:12.040 large full stack hardware software platform that enables them to 0:08:12.280 --> 0:08:16.280 visualize a huge range of territory and that's paired with software, 0:08:16.400 --> 0:08:19.480 computer vision, that and that identifies wildfire fire starts like 0:08:19.520 --> 0:08:22.920 smoke fluid multiple cameras, you can kind of triangulate where 0:08:22.920 --> 0:08:25.640 they're starting from, Um and so I think it's I 0:08:25.640 --> 0:08:28.040 think it's really you know, I I grew up in 0:08:28.040 --> 0:08:31.160 California and you know, it's important to note that wildfire 0:08:31.200 --> 0:08:33.840 is actually a very natural and normal part of the 0:08:33.880 --> 0:08:37.360 California ecosystem or environment, and trees and plants and everything 0:08:37.400 --> 0:08:40.720 are actually evolved to burn. Our most iconic plants, even 0:08:40.720 --> 0:08:44.320 like sequoia trees, require fire to actually reproduce. But over 0:08:44.360 --> 0:08:46.920 the last hunderd years, as United States is engaged in, 0:08:47.440 --> 0:08:50.120 you know, a practice of fire suppression and combined with 0:08:50.160 --> 0:08:53.360 Climate Change, Um, you know, a modest degree, you know, 0:08:53.400 --> 0:08:58.400 a modest change in temperature influences aridity, the lack of 0:08:58.480 --> 0:09:02.199 humidity and Um, you know, creates more, you know, long 0:09:02.280 --> 0:09:05.160 and longer dry seasons, which enables small fires to get 0:09:05.160 --> 0:09:08.839 wildly out of control, and so being able to have 0:09:09.280 --> 0:09:12.440 a system that enables you to recognize when fires start 0:09:12.960 --> 0:09:15.440 within fifteen minutes of them starting on one of these 0:09:15.559 --> 0:09:19.080 very high risk days, Um, you know, can allow us 0:09:19.120 --> 0:09:23.880 to manage our wildfire issue more predictably. That's said, of course. 0:09:24.280 --> 0:09:25.640 You know, we are in a system where it is 0:09:25.679 --> 0:09:27.679 going to happen more often. We're gonna we're going to 0:09:27.720 --> 0:09:29.040 live in a world where we're gonna have to have 0:09:29.120 --> 0:09:32.559 more prescribed and manage Birns as well. Kim, you used 0:09:32.600 --> 0:09:35.000 to be a tech journalist before you became an investor. 0:09:35.040 --> 0:09:39.400 Talk to us about the pivot to climate investing Um. 0:09:39.520 --> 0:09:41.400 You know, I think if you look at my body 0:09:41.600 --> 0:09:45.000 of work, I've always been really engaged with these kind 0:09:45.000 --> 0:09:48.480 of really tangible problems that affect everyday lives, whether that's 0:09:48.840 --> 0:09:54.240 housing affordability, job mobility, socio economic mobility. Um and climate 0:09:54.320 --> 0:09:56.880 is obviously, you know, increasingly a piece of that. I 0:09:56.880 --> 0:10:00.400 think it's important to note that initialized capital, Um actually 0:10:00.440 --> 0:10:04.000 been investing in companies that have that that addressed climate 0:10:04.440 --> 0:10:06.560 change and emissions. We've done it for many, many years. 0:10:06.559 --> 0:10:09.280 There are many companies in the portfolio including run wise, 0:10:09.400 --> 0:10:13.680 which helps thousands of buildings manage their energy usage and therefore, 0:10:13.800 --> 0:10:16.840 you know, reduce emissions. We have companies like Albedo, which 0:10:16.880 --> 0:10:19.880 recently got a huge upground from breakthrough energy ventures, that 0:10:20.000 --> 0:10:23.680 is doing low flying satellites to look like satellites so 0:10:23.679 --> 0:10:26.160 that we can have really accurate imagery of of you know, 0:10:26.200 --> 0:10:28.760 our terrain missions and and and heat sources and all 0:10:28.800 --> 0:10:30.840 the kinds of stuff like that. And then I I 0:10:30.880 --> 0:10:32.640 also let a deal in cult sac, which is doing 0:10:32.640 --> 0:10:34.800 car free neighborhoods and is actually launching its first car 0:10:34.840 --> 0:10:37.000 free community at the end of this year and in 0:10:37.080 --> 0:10:40.800 January and Tempe. And you know, transportation is of the 0:10:40.880 --> 0:10:43.480 US missions. So we've actually been doing it for quite 0:10:43.840 --> 0:10:46.600 a while, hell, um. But of course, you know, climate 0:10:46.600 --> 0:10:48.760 tech in general is having a second wave. You know, 0:10:48.760 --> 0:10:51.720 there was an earlier wave, like ten fifteen years ago, Um, 0:10:51.800 --> 0:10:54.360 when earlier venture capital firms were doing clean tech. And 0:10:54.360 --> 0:10:58.800 obviously in the last five years, Um, it's becoming undeniable. 0:10:59.000 --> 0:11:01.000 It is here, it is now. You know, we all 0:11:01.040 --> 0:11:03.320 remember the Orange Day from two years ago when we 0:11:03.360 --> 0:11:06.080 walked outside and we couldn't see the sun. Um, you 0:11:06.080 --> 0:11:08.880 can't ignore it anymore. and and therefore we really have 0:11:08.960 --> 0:11:11.160 to come together as a society. You know, whether that's 0:11:11.160 --> 0:11:14.240 through the incredible three seventy billion dollar inflation reduction act, 0:11:14.280 --> 0:11:17.120 you know that the federal government just that Biden just signed, 0:11:17.280 --> 0:11:18.880 and we also have to do it in the private sector, 0:11:18.880 --> 0:11:22.200 with lots of entrepreneurs attacking all kinds, all sides of 0:11:22.200 --> 0:11:27.439 this problem as well. Right, remember the Orange Day? Well, 0:11:27.559 --> 0:11:29.800 I wonder, though, we're, you know, now we're in the 0:11:29.800 --> 0:11:33.120 midst of this massive downturn. Is that denting the momentum 0:11:33.160 --> 0:11:37.360 behind climate investing at all? You know, I think it's. 0:11:37.520 --> 0:11:41.440 It's it's actually kind of interesting. Um. So, you know, 0:11:41.480 --> 0:11:43.360 climate tyche is actually one of the spots that is 0:11:43.400 --> 0:11:46.439 still very competitive for deals right now. There's a lot 0:11:46.440 --> 0:11:50.040 of capital flowing into it, particularly at the earlier stages. Um. 0:11:50.080 --> 0:11:52.080 I think there's a number of forces kind of creating 0:11:52.080 --> 0:11:54.560 pressure for that, which is just obviously the immediacy and 0:11:54.600 --> 0:11:57.400 scale of the problem, Um, but also, you know, there 0:11:57.400 --> 0:11:59.920 are a lot of limited partners um into a lot 0:11:59.920 --> 0:12:02.960 of different other you know, funds that like that. What 0:12:03.120 --> 0:12:05.240 capital deployed quickly, and so we're seeing a lot of 0:12:05.240 --> 0:12:07.600 at least at the early stage, lots of lots of 0:12:07.600 --> 0:12:10.079 climate deals are continuing to happen and continue to move 0:12:10.080 --> 0:12:12.679 forward and then continue to be competitive. Now, you've commented 0:12:12.720 --> 0:12:16.480 and reported on San Francisco Culture for years and I'm 0:12:16.520 --> 0:12:19.120 so curious what your take is on the recovery, or 0:12:19.120 --> 0:12:22.000 the La or the lack thereof, of San Francisco coming 0:12:22.000 --> 0:12:24.319 out of the pandemic. What's your sense of how hard 0:12:24.800 --> 0:12:28.360 tech culture has been hit, if it can recover and 0:12:28.400 --> 0:12:30.480 if there's really a reason startups need to be in 0:12:30.520 --> 0:12:34.600 San Francisco anymore? Sure? Um, so I have. I mean 0:12:34.600 --> 0:12:36.360 I have many thoughts, but I could do I could 0:12:36.400 --> 0:12:41.400 do a lot longer, Um, you know, more time, but Um, 0:12:41.440 --> 0:12:44.840 you know, on on. On the you know, startup side. 0:12:45.160 --> 0:12:47.400 You know, I've actually shared a lot of data from 0:12:47.400 --> 0:12:49.880 a portfolio during and throughout the pandemic showing that we 0:12:49.920 --> 0:12:53.720 went from, you know, San Francisco obviously being the leading 0:12:53.760 --> 0:12:56.400 place that companies would have a headquarters to you know 0:12:56.559 --> 0:13:01.160 distributed Um or remote teams kind surpassing that, but San 0:13:01.200 --> 0:13:04.600 Francisco was still like the number one physical destination that 0:13:04.600 --> 0:13:07.600 that that companies wanted to be located in. Um, I 0:13:07.600 --> 0:13:10.800 think on the government side, I mean, you know, there 0:13:10.840 --> 0:13:14.000 was a great ten years that the city had, you know, 0:13:14.120 --> 0:13:17.640 in terms of tax revenues companies being founded there, and 0:13:17.800 --> 0:13:19.640 it kind of overplayed its hand and I think it 0:13:19.640 --> 0:13:23.559 would have been really important for say, you know, you know, 0:13:23.600 --> 0:13:26.160 the Board of supervisors, even the mayor, who has generally 0:13:26.160 --> 0:13:28.079 been supportive tech, to come out earlier and say that, 0:13:28.120 --> 0:13:31.360 you know, really wanting to partner with with employers here 0:13:31.800 --> 0:13:34.280 and even now, like two or three years and you 0:13:34.280 --> 0:13:37.000 don't really get the sense that any of you know, 0:13:37.080 --> 0:13:39.520 aside from the mayor's office, like any of the leadership 0:13:39.559 --> 0:13:42.760 in the city, really wants companies here. Um, and I 0:13:42.800 --> 0:13:44.520 know that doesn't make or break a decision, but like 0:13:44.559 --> 0:13:47.240 it's definitely like you can compare and contrast the leadership 0:13:47.280 --> 0:13:50.480 of different cities and you know see where where you know, 0:13:50.520 --> 0:13:53.040 people feel really excited about being and so I do 0:13:53.120 --> 0:13:56.520 think that tone matters a lot. All Right, uh, well, 0:13:56.600 --> 0:14:00.440 appreciate you joining US initialized capital partner, Kim My cutlor. 0:14:01.160 --> 0:14:03.440 Good to have you back. Thank you so much for 0:14:03.440 --> 0:14:06.920 having me. Well, NASTAC is making its first major push 0:14:06.960 --> 0:14:09.480 into crypto. The second largest stock exchange will start by 0:14:09.480 --> 0:14:13.560 offering custody services for Bitcoin and either to its institutional clients. 0:14:13.559 --> 0:14:16.640 This will put NASDAC in competition with Crypto firms like 0:14:16.760 --> 0:14:21.880 coin base and big go to a certain extent. Coming 0:14:21.960 --> 0:14:24.080 up a huge day for the car industry, with a 0:14:24.120 --> 0:14:27.240 big EV order from hearth and a one billion dollar 0:14:27.400 --> 0:14:31.280 warning from Ford. What's that all about? We'll tell you next. 0:14:31.520 --> 0:14:45.440 This is Bloomberg, a suburb of Shanghai is being touted 0:14:45.520 --> 0:14:49.440 as China's new Silicon Valley. Ling Gong is quickly becoming 0:14:49.440 --> 0:14:54.800 a semiconductor and evy manufacturing hub quick takes. Charlie Jew explains. 0:14:59.400 --> 0:15:02.640 This is Lin gone, a suburb of China's financial center 0:15:02.680 --> 0:15:07.120 of Shanghai. Over the past few years, tens of billions 0:15:07.160 --> 0:15:10.640 of dollars have poured into this small town. I'm currently 0:15:10.760 --> 0:15:13.880 in Lincoln special area, which is part of the Shanghai 0:15:13.960 --> 0:15:17.640 Free Trade Zone. Three years ago, President Sign Ping identified 0:15:17.880 --> 0:15:21.840 as a frontier hub for future industries. You know, from 0:15:22.000 --> 0:15:26.080 artificial intelligence to electric vehicle and from chip making to 0:15:26.240 --> 0:15:29.320 bio medicine. Those are the industry that China wants to 0:15:29.440 --> 0:15:32.760 dominate in the twenty first century. They're also at heart 0:15:32.800 --> 0:15:36.600 of the competition between China and the US. China needs 0:15:36.640 --> 0:15:41.320 to import four thirty billion dollars of semiconductors annually to 0:15:41.440 --> 0:15:46.200 build iphones, drones, laptops and other electronics, because it has 0:15:46.360 --> 0:15:50.200 very little high end chip making capabilities of its own. That, 0:15:50.400 --> 0:15:53.200 in turn, is forcing the Chinese government to step up 0:15:53.240 --> 0:15:57.440 its own indigenous innovation and boost self sufficiency in order 0:15:57.480 --> 0:16:01.520 to rely lessons foreign technology in the future. Critics, Charlie, 0:16:01.680 --> 0:16:05.520 you there. Meantime, rental car giant hurts announced it all 0:16:05.560 --> 0:16:10.320 by a hundred seventy five thousand evs from GM over 0:16:10.360 --> 0:16:13.800 the next five years. Meantime, GM's crosstown rival Ford Start 0:16:13.840 --> 0:16:16.920 Stock Sync by the most in eleven years. Has schobal 0:16:16.960 --> 0:16:20.520 inflation and supply chain paint hurts its bottom line. Covering 0:16:20.520 --> 0:16:23.440 it all, who else but are at bloodlow? Can you 0:16:23.480 --> 0:16:25.840 square the circle for us? Aid? Yeah, I mean it's 0:16:25.840 --> 0:16:28.400 been a huge day for the industry and neither piece 0:16:28.440 --> 0:16:32.040 of news helped stop market very much at all. For hurts, 0:16:32.160 --> 0:16:35.760 it's really interesting right because they have been very active 0:16:35.840 --> 0:16:38.560 in trying to electrify their rental fleet. Remember, they've already 0:16:38.600 --> 0:16:41.360 got deals with others, but they had this objective of 0:16:42.400 --> 0:16:45.880 of their rental fleet being electrified by four and this 0:16:45.960 --> 0:16:49.360 is quite aggressive right at this time where GM's transitioning 0:16:49.360 --> 0:16:53.120 to electric drive train. A hundred seventy five thousand evs 0:16:53.200 --> 0:16:55.160 over a five year period is a lot of cars. 0:16:55.280 --> 0:16:58.000 And it's not just one of their lines. They're talking 0:16:58.000 --> 0:17:01.680 about Buick, caddy, Chevy and they're going to start shipments 0:17:01.720 --> 0:17:05.480 of the Bolt E V and EU v as soon 0:17:05.520 --> 0:17:07.960 as the first quarter of next year. So this seems tangible. 0:17:08.000 --> 0:17:10.080 But again, look at your screen. It didn't do much 0:17:10.119 --> 0:17:14.640 to support the stock on Tuesday. So talk about for them, 0:17:14.960 --> 0:17:17.800 that's quite a big drop. What's going on here? Yeah, 0:17:17.920 --> 0:17:19.879 I mean, let's just say it again. For four this 0:17:20.000 --> 0:17:22.560 was the biggest drop in its stock in eleven years. 0:17:22.640 --> 0:17:25.280 And what they did is revised guidance for the current 0:17:25.320 --> 0:17:29.480 period because inflation around the world is meaning higher costs 0:17:29.560 --> 0:17:32.600 for them and supply chain pains continue missing. There are 0:17:32.840 --> 0:17:36.240 meaning there are apart shortages, real part shorusages. The net 0:17:36.280 --> 0:17:39.520 result there are forty thousand and forty five thousand Ford 0:17:40.080 --> 0:17:43.560 Suvs and pickup trucks sitting in a parking lot somewhere 0:17:43.760 --> 0:17:46.000 that are not ready to ship to customers. Now the 0:17:46.040 --> 0:17:50.120 important point. Ford reaffirmed its full year guidance and said 0:17:50.119 --> 0:17:52.520 that they'd be able to get the missing parts back, 0:17:52.720 --> 0:17:55.159 put them in these vehicles and sell them by the 0:17:55.240 --> 0:17:57.919 end of this year. But clearly the market didn't believe them. 0:17:57.960 --> 0:18:00.639 When you look at the severity of that stock. Is 0:18:00.680 --> 0:18:04.000 it semi conductors that are causing the real pain here? Yeah, 0:18:04.280 --> 0:18:06.960 this is fascinating because in the in the statement, Ford 0:18:07.000 --> 0:18:09.760 didn't say very much at all. They didn't specify. All 0:18:09.760 --> 0:18:12.000 we have to go on is that semi conductors have 0:18:12.160 --> 0:18:15.159 been an issue throughout this year and even before that. 0:18:15.320 --> 0:18:18.040 GM earlier in the year, in July, kind of gave 0:18:18.080 --> 0:18:21.320 a similar warning that they had these this inventory of 0:18:21.440 --> 0:18:24.960 non shippable cars because of missing parts, and semi conductors 0:18:25.000 --> 0:18:27.720 were a part of that. So we don't have the specifics. 0:18:27.720 --> 0:18:30.399 We knew that in some sections of the semi conductor market, 0:18:31.040 --> 0:18:34.199 specific types of chips were improving inventories were starting to 0:18:34.240 --> 0:18:36.720 build up, but we hope to get that granularity when 0:18:36.760 --> 0:18:40.280 Ford actually reports earnings next month because, remember, this was 0:18:40.320 --> 0:18:43.560 them front running it. This was a prelimb update to 0:18:43.600 --> 0:18:47.200 their guidance. All right, Lulo, trends. I know you will 0:18:47.240 --> 0:18:58.040 continue to follow. Thanks much. The SALONA foundation has res 0:18:58.119 --> 0:19:02.000 the third and released the third of its energy impact report. 0:19:02.080 --> 0:19:06.560 slants overall emissions rose roughly in the past six months, 0:19:06.640 --> 0:19:10.200 driven by overall growth in its validator network, the number 0:19:10.240 --> 0:19:13.359 of computers running the blockchain and the addition of e 0:19:13.480 --> 0:19:16.120 waste emissions. In this analysis, here to talk about that 0:19:16.480 --> 0:19:18.359 and more's a lot of laps. Co Founder on a 0:19:18.400 --> 0:19:21.040 totally Yaco Vengo, as well as our own crypto contributor, 0:19:21.280 --> 0:19:23.560 Shinali Bass and a totally. Thank you so much for 0:19:23.640 --> 0:19:26.560 joining us. How do these numbers strike you? Um, I 0:19:26.560 --> 0:19:28.560 think SALONA is doing great. If you look at the 0:19:28.640 --> 0:19:33.440 overall energy per transaction, it's, uh, you know, for auctions action, 0:19:33.480 --> 0:19:36.359 as less than a google search and maybe two to three, 0:19:36.680 --> 0:19:39.919 you know, Google searches for an expensive one. Um, basically 0:19:40.400 --> 0:19:42.800 is as good as using a web to service, and 0:19:43.000 --> 0:19:44.960 I'm really proud of that. So at this point, what 0:19:45.119 --> 0:19:48.639 further steps can be taken to reduce energy use on 0:19:48.800 --> 0:19:51.960 the SALONA blockchain that you're not already doing? Well, as 0:19:51.960 --> 0:19:55.479 the network matures and with every release it gets faster, 0:19:55.720 --> 0:19:58.200 that makes it more energy efficient, as well as every 0:19:58.200 --> 0:20:01.719 hardware release. You know, and Intel or video release their 0:20:01.760 --> 0:20:05.199 next generation computers. Those are more energy efficient. So this 0:20:05.280 --> 0:20:08.200 will naturally get cheaper and faster and more energy efficient 0:20:08.240 --> 0:20:11.120 over time. How big of a deal is this becoming 0:20:11.119 --> 0:20:13.720 to investors? Because you find that people who believe in 0:20:13.720 --> 0:20:16.879 Bitcoin are still relying on mining and you see ethereum 0:20:16.880 --> 0:20:20.000 moving over to proof of steak. And so when you're 0:20:20.040 --> 0:20:22.600 talking to investors and people who are thinking about how 0:20:22.640 --> 0:20:26.320 these blockchains work moving forward, what's going to be the 0:20:26.440 --> 0:20:30.679 driving force that pushes people into more environmental concerns? I 0:20:30.720 --> 0:20:33.320 think this is important for a lot of applications to 0:20:33.440 --> 0:20:36.880 wanna build web to services and attract new users, because 0:20:36.920 --> 0:20:40.320 the users really care about energy energy efficiency. So we 0:20:40.400 --> 0:20:43.040 see that a lot of new web three companies really 0:20:43.160 --> 0:20:46.879 Pixelana because of this Um and and really attracted to 0:20:46.960 --> 0:20:50.000 the UM. You know overall roadmap of how we're going 0:20:50.040 --> 0:20:52.920 to make the network even cheaper and faster and more reliable, 0:20:53.040 --> 0:20:54.960 and obviously we're a couple of days away from the 0:20:55.000 --> 0:20:57.840 great merge from the ethereum network. But what does that 0:20:57.880 --> 0:21:00.719 mean for you since that's happened, do you find that 0:21:00.760 --> 0:21:04.600 the competitive forces have changed by any means? Even Post Merge? 0:21:04.600 --> 0:21:09.439 Ethereum is still much less energy efficient than Salona and 0:21:09.720 --> 0:21:12.120 I think I'm really excited about the fact that ethereum 0:21:12.200 --> 0:21:14.280 is moving to proof of stake, because this will finally 0:21:14.840 --> 0:21:17.400 put the debate around whether proof of stake is secure 0:21:17.920 --> 0:21:20.920 to rust. I think ethereum doing this will really make 0:21:20.960 --> 0:21:24.119 it Um, you know, proof proof to everyone that this, 0:21:24.119 --> 0:21:27.679 this technology is not mature enough to handle very large, 0:21:28.440 --> 0:21:33.280 you know, capitalization for for network. How far could you 0:21:33.320 --> 0:21:36.840 go in terms of potentially rewarding the validators or computers 0:21:36.880 --> 0:21:41.320 that themselves use renewable energy? This is not something that 0:21:41.440 --> 0:21:44.520 we've looked at yet because over all, the SALONA network 0:21:44.600 --> 0:21:47.560 uses so little energy that it's uh, you know, almost 0:21:47.560 --> 0:21:52.000 in significant amount to uh, to offset Um. SALONA foundation 0:21:52.040 --> 0:21:54.800 does its own offsets that covers the entire network. So 0:21:55.280 --> 0:21:57.720 when you look more broadly, Crypto, obviously, you know, it 0:21:57.720 --> 0:22:00.479 obviously gets a bad rap for its energy used. Do 0:22:00.520 --> 0:22:05.800 you think that's deserved? Mining is definitely very energy intensive. Um. 0:22:05.920 --> 0:22:08.720 What folks need to understand that, you know, bitcoin mining 0:22:08.720 --> 0:22:11.040 would work in a world without any fossil fuels and 0:22:11.040 --> 0:22:12.719 then the end of the day it's the fossil fuels 0:22:12.720 --> 0:22:15.679